The IL&FS Group has sold its 26 per cent stake in ONGC Tripura Power Company (OTPC) to GAIL (India) for Rs 319 crore. According to officials in the know, this amount will be credited to IL&FS’s cash balance and disbursed according to the resolution plan approved by the National Company Law Appellate Tribunal (NCLAT).
The 26 per cent stake that IL&FS held in OTPC was valued at Rs 1,227 crore for this transaction. According to an IL&FS statement, around Rs 3,656-crore debt, estimated to be part of the overall debt around Rs 99,000 crore (as on October 2018) of the group, has been resolved through this transaction.
IL&FS Group held the 26 per cent stake in OTPC through two subsidiaries. IL&FS Energy Development Company (IEDCL) held a 12 per cent stake and IL&FS Financial Services (IFIN) held the rest. According to the initial shareholding, Oil and Natural Gas Corporation (ONGC) held 50 per cent stake in OTPC, India Infrastructure Fund II had 23.5 per cent, and the government of Tripura held 0.5 per cent. Following this transaction, GAIL will hold 26 per cent in OTPC, with ONGC, Indian Infrastructure Fund II and the Tripura government holding their respective stakes.
OTPC has been categorised as a green company, and has an aggregate debt of around Rs 3,000 crore, which will continue to be serviced under the new shareholding, the IL&FS statement said, adding that the Group had received approvals from the Committee of Creditors, retired Supreme Court Judge D K Jain, the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI) for the stake sale.
OTPC is a special purpose vehicle, formed by ONGC, the Tripura government, and IL&FS to set up and operate a 726.6 Mw combined cycle gas turbine (CCGT) thermal power plant at Palatana, Tripura. The company has environmental approval to set up two more units of 363 Mw each, which would take the total capacity to 1,453 Mw.
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